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This paper develops a spatial theoretical growth model in order to study the impact of physical and human capital relocations on the growth of open economies. Analytical and simulation results show how the respective neighbours determine an economy's development, why convergence and divergence may alternate in the medium-run, and that interregional migration as a consequence of wage inequalities causes disparities to prevail in the long-run. The empirical part applies spatial econometric specifications for European regions on the NUTS2 level for the observation period 2000-2010. The estimations underline the importance of human capital endowments and its relation with spatial location. (author's abstract) / Series: Working Papers in Regional Science

This paper applies New Growth Theory (NGT) to the economic development plan of the Institute for Advanced Learning and Research (IALR) for the Dan River region. New Growth Theory is summarized into five concepts: knowledge and human capital, technology, flexible production and innovation, and the institutional environment. The IALR program demonstrates this NGT framework. The IALR program seeks to promote growth by attracting exogenous demand for innovation and high tech. Endogenously, the program plans to create an institutional support environment and human capital infrastructure. The New Growth Theory supports the IALR in developing a knowledge based economy. However, the New Growth Theory has limitations in application for economic development. It assumes that the targeted economy has some physical and social infrastructure. The Dan River region lacks transportation infrastructure and a history of valuing higher education. The New Growth Theory assumes that using knowledge as a factor will insure against diminishing returns. However, growth from high tech is risky and uneven. The IALR program is an example of an under-educated region trying to transform its economy by using high tech. What may happen is an increased gap between the lower and higher income population, with skilled knowledge labor being recruited and the existing human capital not able to keep up with the new skill requirements. Finally, while the Dan River region has a need to work on quality of life aspects, such as living conditions, equity, the environment, health and civic infrastructure, New Growth Theory does not consider these aspects. / Master of Public and International Affairs

Empowered by information and communication technologies (ICTs), e-commerce has radically transformed the global economic landscape over the past decade. The diffusion of e-commerce so far has mostly been limited to developed countries and has been relatively slow in the rest of the world. To alleviate the digital divide, the United Nations has sponsored research results and given financial support to help developing countries. This dissertation applies growth theory from developmental economics and macroeconomics to analyze B2C e-commerce growth and diffusion across countries. There are two empirical studies in this dissertation. An initial exploratory study proposes three models for the growth of e-commerce revenues for European countries. An endogenous growth model proposes that e-commerce growth in a country is primary driven by internal factors. A contrasting exogenous growth model argues that e-commerce growth in a country is externally driven by leading countries. A third model, a mixed endogenous and exogenous growth model, argues that e-commerce growth is both internally and externally driven. This study tests data for 17 European countries from 2000 to 2004. The findings demonstrate that B2C e-commerce growth is driven by internal factors and external factors from a leading country, in support of the proposed explanatory growth theories. The second empirical study further proposes a hybrid growth-theoretic embedded technology infrastructure theory to investigate the role of Internet-based technology infrastructure in affecting e-commerce growth in a country. Its main purpose is to investigate whether there are simultaneous effects between Internet-based selling technology infrastructure and e-commerce growth. The findings show that there are two-way interactions between e-commerce growth and technology infrastructure. The overall objective of this dissertation is to open up a dialogue about the efficacy of alternative theoretical perspectives that will help to align IS and e-commerce research with theoretical and methodological developments from economic research.

Distinguishing between profit led and growth led demand regimes, we analyze the conditions of existence and stability of long run equilibrium of unemployment. The model we employ has at its center the relation between growth and distribution. Growth can be either wage led or profit led. Distribution itself is a function of the unemployment rate, with higher unemployment leading to a higher profit share. We use Okun's Law to close the model, making the change of the rate of unemployment a function of growth. The interesting result of our analysis is that in profit led demand regime the short run and long run equilibrium are stable. However, if the demand regime is wage led, the same conditions that guarantee stability of the goods market equilibrium in the short run render impossible the existence of a long run equilibrium rate of unemployment, and vice versa. Thus, if Kalecki's proposition that higher wages lead to higher growth is true, there will be no equilibrium rate of unemployment in the long run that serves as an anchor for the economic system. (author's abstract) / Series: Working Papers Series "Growth and Employment in Europe: Sustainability and Competitiveness"

No / In this chapter we lay out a broad outline of Rostow’s Stages growth theory. Rostow in his seminal work identified five different stages of economic growth - the traditional society, the preconditions for take-off, the take-off, the drive to maturity, and the age of high mass consumption. Interest in Rostow’s stages theory was in 1960s and persists even now as researchers are still intrigued by the ideas and notions laid out in Rostow’s theory (Costa et al. 2016 a,b; McCartney 2018; Solivetti 2005). Interestingly in today’s world, the theory is being applied to different contexts and scenarios such as application of theory to environment, China-Pakistan Economic Corridor etc (Kesgingoz, H. and Serkan 2016; McCartney 2018). The stages of growth theory covered a broader spectrum of issues ranging from economic, social and political to US-Russia (the then USSR) cold war and their dominance at the global level. In this chapter we restrict ourselves to economic aspects of stages theory only. / The chapter is published under the title: 'Stages of Growth'

Within a panel data context with fixed effects method, using data on a sample of 40 lower- middle income economies, this paper investigates whether and to what extent FDI stimulates economic growth over the period 2007-2017. The main finding of this paper highlights the complementary effects between FDI and education, suggesting that a certain level of education must be reached in order for FDI to contribute positively on economic growth. Further, the level of education in this sample set is below the level that is considered as adequate in order to spur economic growth and thus this affects the absorptive capacity. This paper can only confirm that there is a certain association between FDI and economic growth and cannot confirm the widespread belief that FDI stimulates economic growth due to that the estimated models more often than not provided insignificant results.

China's economic development has performed spectacularly during the period of China's economic transition as a result of radical economic reform in the all markets. The country has also gone through extensive fiscal reforms in the last three decades. However, a number of problems have been associated with such rapid economic growth. One of these has been raising inequality. In both Keynesian and neoclassical endogenous growth theories, public spending can play an important role for economic growth and inequality. The majority of previous studies have focused on the relationship between public spending and economic growth, or between public spending and inequality separately. There is no doubt that public spending has an effect on both economic growth and equity simultaneously. In this respect, this thesis attempts to address the problems that have emerged during the period of China's fiscal reforms, and seeks to examine the effects of public spending on economic growth and equality in the same model. This thesis investigates the dynamic relationships among these three variables in China. For aggregate national data, vector error correction model (VECM) has been used. Analysis at the provincial level is based on the panel vector auto-regression (PVAR) model. These methods help to solve the endogeneity in estimations. The national level analysis indicates that total public spending shows a long term Granger causality with GDP per capita, which supports the positive growth effect of public spending in the Keynesian and endogenous growth model. Social public spending has a negative effect on real output per capita in both the short term and long term, but it also has a negative impact on income inequality. Moreover, we find that a higher level of real GDP per capita will increase the level of inequality, but a higher level of inequality has a negative effect on real GDP per capita in the long term. Furthermore, total provincial public spending and provincial social spending have either a non-significant effect on economic growth. On the other hand, the SOEs' investment has a significant, positive growth effect at both the national and provincial level. As for the redistributive role of the public spending, the provincial total public spending and social spending have played an important role on income distribution. Furthermore, the Gini coefficient has a positive effect on the per capita growth rate at the provincial level, but the economic growth has no significant impact on the Gini coefficient.